Methyl Tertiary Butyl Ether Market Report Scope & Overview

The methyl tertiary butyl ether market size was USD 17.01 billion in 2024 and is expected to reach USD 24.68 billion by 2032, growing at a CAGR of 4.77% over the forecast period of 2025-2032. 

Methyl tertiary butyl ether market analysis highlights that the growth in number of refining capacities is a major factor driving market expansion. The increase in global energy demand, particularly from developing parts of the world, has resulted in massive investments in oil refinery modernization and expansion to satisfy domestic fuel consumption requirements and better fuel quality. This trend translates into a direct benefit for the octane booster MTBE, which is extensively used as an oxygenate in gasoline to reduce emissions. In large and complex refineries, it enables more economical and less costly production and consumption of MTBE in blending gasoline. Not only does this expansion bolster supply capabilities, but it also aids in compliance with tighter environmental regulations on emissions from fuels.

The U.S. Energy Information Administration (EIA) expects U.S. crude oil refining capacity to rise 1.5% to 18.38 million barrels per day (bpd) in 2024. This growth includes the notable expansions at ExxonMobil's Beaumont refinery in Texas, which added around 250,000 bpd. The improvements not only strengthen the supply capabilities but also help meet the stricter clean transport and fuel emission regulations of late. These investments not only signify industry commitment to increasing and updating refining capabilities but also reinforce continued demand for methyl tertiary butyl ether market growth.

Market Dynamics

Drivers

•  Rising Demand for High-Octane Fuel Additives Drives the Market Growth

One of the important drivers responsible for the growth of the methyl tertiary butyl ether (MTBE) market includes an increasing demand for high-octane fuel additives. MTBE is a common oxygenate used to boost the octane level of gasoline to enhance engine performance and fuel economy while reducing engine knocking. Moreover, regulatory authorities in multiple regions are enforcing the consumption of cleaner-burning fuels to minimize air pollutants and carbon footprint. This has hastened the use of MTBE as the attractive additive in unleaded gasoline, especially in markets where ethanol is less abundant or more expensive. Similarly, the transition of the automotive industry towards higher fuel standards continually supports the robust demand for MTBE in formulations of global automotive fuel.

In Europe, the European Commission's Fuel Quality Report, the petrol sold in 2021 was over 95% comprised of fuels with a petrol grade Research Octane Number (RON) of 95. Although at an EU level, the share of higher RON fuels (≥98) remained unchanged on a year-on-year basis, it reflects steady demand for high-octane fuels in the 15 EU member states concerned.

Restrain

•   Regulatory Restrictions and Bans May Hamper the Market Growth

Regulatory perspective, the several restrictions and bans on the usage of Methyl Tertiary Butyl Ether (MTBE) could be a major obstacle for the growth of the MTBE market. Due to the environmental and health issues linked to MTBE, many places impose strict regulations, especially in the U.S. and Europe. MTBE from gasoline storage tanks or improper disposal of the substance improperly, has contaminated water supplies, leading to serious concerns over its effects on the environment for decades to come. To address these issues, several nations have adopted or are considering bans or restrictions on the addition of MTBE to gasoline. For instance, the U.S. Environmental Protection Agency (EPA) has long been engaged in the effort to eliminate MTBE in favor of ethanol and other safer, more sustainable fuel additives.

Opportunities

• Expanding Fuel Blending Infrastructure Creates Opportunities in the Market

The methyl tertiary butyl ether market includes expansion of fuel blending infrastructure to cater to the growing demand for blending octane enhancers and fuels. The modernization of fuel production and delivery systems in both emerging and more developed economies has created an increased demand for high-quality, standardized fuels. Fuel blending is the process of mixing different fuel components, such as oxygenates (propylene, etc.), like MTBE, to increase performance and reduce harmful emissions. The demand for additives, including MTBE, is projected to witness a sharp rise in countries with growing fuel blending infrastructure, especially developing countries such as Southeast Asia, Latin America, and Africa. Higher vehicle ownership and transportation demand in these regions result in a greater demand for cleaner fuels and drive the methyl tertiary butyl ether market trends. MTBE is also a very important component for meeting fuel quality specifications and enhancing engine performance by boosting the octane number and reducing knocking.

The U.S. Department of Agriculture (USDA) has spent more than USD 66 million through the Higher Blends Infrastructure Incentive Program (HBIIP) aimed at expanding infrastructure for the sales and use of higher blends of ethanol and biodiesel, helping farmers realize new markets for their agricultural products by selling domestic renewable fuels. This program is intended to incentivize broader market uptake of higher blends by providing partial reimbursement for biofuel infrastructure development costs.

Segmentation Analysis

By Manufacturing Process

The fluid liquid cracker held the largest methyl tertiary butyl ether market share, around 54%, in 2024. This is owing to the crucial stages of modern refining operations. Fluid Catalytic Cracking (FCC) units are used widely to upgrade heavy hydrocarbons into lighter and more fungible products like gasoline oxygenates and olefins. MTBE is primarily used as a gasoline additive to increase octane levels and promote cleaner-burning fuels. FCC units produce high-octane gasoline components, and thus, it is preferable to use them in blending with the MTBE fuel additive market for more stringent fuels in terms of properties and emissions requirements.

Steam cracker held a significant methyl tertiary butyl ether market share due to its vital role in generating major feedstocks, including isobutylene, which is a key raw material in the synthesis of MTBE. Steam cracking is one of the dominant petrochemical technologies, which consists of the thermal degradation of hydrocarbons to lighter olefins such as ethylene, propylene, and most importantly, isobutylene. MTBE is gaining traction worldwide due to the growing need for high-octane automotive fuel additives and the need for cleaner combustion, especially in areas where ethanol blending is limited.

By Application

Gasoline held the largest market share, around 74%, in 2024. It is due to the usage of MTBE as a popular octane booster & oxygenate for gasoline blending. When added to gasoline, MTBE improves the combustion quality by reducing engine knocking and increasing fuel efficiency, especially for internal combustion engines. It enhances the oxygen content of fuel, which helps to combust cleaner and meets stringent vehicular emission norms existing in various countries across the globe. MTBE remains the additive of preference, especially in those areas where ethanol blending is limited to just the few places where current ethanol availability, infrastructure, or policy prevents it.

Regional Analysis

Asia Pacific held the largest market share, around 41.32%, in 2024. It is due to the rapidly growing refining capacity in the region, coupled with the high gasoline demand and low infrastructure for ethanol blending fuel. The growth in vehicle ownership and industrialization of China, India, and other Southeast Asian nations has resulted in a sizeable increase in fuel consumption and a corresponding growing need for high-octane fuel additives such as MTBE. Moreover, in some Asian countries, regulatory frameworks still allow or even favor blending with MTBE in fuels, which will also promote the pervasive use of MTBE. Methyl tertiary butyl ether companies combination of these factors makes Asia Pacific the leading region in the global MTBE market.

In September 2024, Air Liquide announced a USD 66.64 million investment to support the development of the chemical Wanhua Chemical Group in China. Under this partnership, an Air Separation Unit (ASU) slated to boost chemical processes and consequently augment production of industrial gases for MTBE will be developed.

North America methyl tertiary butyl ether market held a significant market share and is the fastest-growing segment in the forecast period. It is owing to the highly advanced refining infrastructure, high fuel consumption, and stringent regulations on fuel quality to reduce air pollution. MTBE has been heavily used in the U.S. as an additive to gasoline to raise octane and promote cleaner-burning vehicles. Despite U.S. environmental bans on MTBE use in motor fuels in favor of ethanol, MTBE continues to maintain a stable demand for export and industrial use. The other factors supporting the North America dominance in the global MTBE market include, strong foothold of key market players in this region, constant investment in advancing fuel blending technologies, along with a well-established fuel logistics network.

U.S. methyl tertiary butyl ether market size was USD 3.36 billion in 2024 and is expected to reach USD 5.31 billion by 2032 and grow at a CAGR of 5.89% over the forecast period of 2025-2032. It is owing to its high refining capacity, massive gasoline consumption, and well-developed petrochemical infrastructure. The U.S. has been a long-term and comparatively large producer and shipper of MTBE due to its well-established refining sector that encourages the use of fuel additives to raise octane content and promote combustion efficiency.

In the U.S., MTBE exports rose for the first half of 2024 to their highest level in seven years, at 894,212 metric tonnes, or a 45% increase over the first half of 2023. Mexico took 65 percent of these exports alone, constituting the biggest market.

Europe held a significant market share in the forecast period. It is owing to the availability of existing refining infrastructure, high emissions standards, and a robust automotive and petrochemical industry. Using MTBE in gasoline blending has been implemented in many European countries over the past few years to comply with EU directives on lowering vehicle exhaust emissions and improving air quality. MTBE has not been used in the U.S. due to fears of groundwater contamination, but its use is still allowed in Europe, such as in reformulated gasoline. Further, energy efficiency and emission cuts in the region have propelled the consumption of high-octane fuel such as MTBE, which optimizes engines and thereby reduces carbon monoxide emissions.

Key Players

The methyl tertiary butyl ether market companies include SABIC, LyondellBasell Industries, Huntsman Corporation, Eni S.p.A., Evonik Industries, Petronas Chemicals Group, Zhenhai Refining & Chemical, Reliance Industries, China National Petroleum Corporation (CNPC), and SINOPEC.

Recent Development:

• In 2023, SABIC also increased its MTBE production capacity to keep up with demand in the Asia-Pacific region. This is to upgrade its fuel additive as per the stricter environmental standards.

• In 2024, Petronas launched a new formulation of MTBE that is tailored to emerging markets where ethanol-blended additives are not a practical solution, giving the company greater penetration in Southeast Asia.

• In 2023, SINOPEC released a new MTBE blend that is more environmentally friendly, but is intended to provide better performance. Such products are forecasted to hold the best market share, especially within the regions where stiff laws regarding fuel efficiency are enforced.